Baby Lexus set to double marque's sales

When the Lexus IS200 goes on sale next month it will turn the luxury car market on its ear, reports ALASTAIR DOAK

Baby Lexus set to double marque's sales

17 March 1999

The so-called lower luxury market, the sector BMW created with the original 3-Series and one it still dominates with the latest version of its small sedan, will be changed forever when Toyota's new baby Lexus goes on sale next month.

Priced from $51,900 for the base IS200 (the base 318i is $54,370), it promises to do what its big brother, the LS400, did when it arrived on the upper luxury market a decade ago.

The LS400's arrival sent shock waves through BMW and Benz. Its standard of quality and refinement and its longer list of features showed up the failings of the top luxury brands and guaranteed success for Lexus, par ticularly in the huge United States market.

Suddenly the German car's ability to deliver on-road poise and driver enjoyment were no longer enough. Customers wanted more. Since the LS400 went on sale, BMW and Benz have lifted quality and value and have enjoyed a clear edge when it comes to ride, handling and driver enjoyment.

The IS200 wants to change all that. With this car, Lexus not only plays the value/quality card, but it has also been designed to meet the driver enjoyment challenge of the German's head-on.

Just look at the car's spec sheet and there can be no doubt that it's the BMW 3-Series - the car that defines this segment and is still held up as the drivers' choice - that Toyota has in its sights.

Instead of four-cylinder power, which is offered in the base 3-Series, the Lexus gets a high-tech, in-line, 2.0-litre six-cylinder engine that adopts 24 valves, variable camshaft timing and a variable length induction system to maximise power and torque. It pumps out 114kW at 6200rpm and 195Nm at 4600rpm while drinking regular unleaded fuel.

And of course, in true BMW fashion it drives the rear wheels. To maintain competitiveness, it's likely that BMW will fit its 2.0-litre in-line six to the base 318i. This engine has already been approved for the facelifted version of the Z3 convertible due by September. It will also put pressure on the Mercedes C class and Audi A4 that offer lower-powered four-cylinder power plants in the cheapest models.

The IS200's sporty overtones are also obvious from the standard manual transmission, which has six and not the usual five forward gears. A four-speed automatic version (at $53,900) is also available.

Suspension is by the classic arrangement of double wishbones front and rear. To ensure the suspension works well in addition to looking good on paper, the Japanese-designed car was given a heavy work out in Europe.

Engineers spent a lot of time fine-tuning the IS200 in Germany on the Nurburgring and autobahns and on secondary roads in the south of France. It even got a workout here.

Spend more and you can choose between a range of body kits and spoilers to further cement this car's sports sedan design and if you fork out $58,100, you get the Luxury Option, which appears to lean more towards the sports sedan than luxury cruiser.

For the extra money, you get 17-inch alloy wheels, better tyres, drilled alloy pedals and leather and alacantra seat trim.

The desire to add driving enjoyment to the Lexus mantra is designed to attract a new breed of younger buyers into the fold. Lexus Australia's senior executive vice presi dent, John Conomos, said: "The IS200 is as important to the Lexus franchise as the original LS400 was at launch. The values which have become synonymous with Lexus will now become available to a vibrant young market - and one that will stay with us for life."

About 2,000 buyers are expected to drive away in an IS200 this year, a figure that will double Lexus sales. To meet the demand, the company is increasing the number of dealers and will introduce a used car warranty program. The car also comes with the Encore program that provides customers with a range of privileges and special deals at hotels, sporting events and concerts.